Recurrent charges for general services—registered interest holders
210 Recurrent charges for general services—registered interest holders
This section applies to a former occupant of residential premises in a retirement village who is a registered interest holder in relation to the premises.
Subject to subsection (3), the former occupant’s liability to pay recurrent charges in relation to general services that arise after the former occupant permanently vacated the residential premises stops on—
the day the operator of the village enters into—
a village contract with an incoming resident in relation to the premises; or
a residential tenancy agreement with an incoming tenant in relation to the premises; or
the day a person takes up residence in the premises with the operator’s consent; or
if the operator buys the premises from the former occupant—the day contracts for the purchase are exchanged; or
if the former occupant is a registered long-term sublessee—unless the contract between the former occupant and the operator provides for an earlier day, the earlier of the following:
if the ACAT ended the residence contract—the day the former occupant permanently vacated the premises;
if the former occupant permanently vacated the premises after receiving notice of the operator’s intention to apply to the ACAT for an order ending the residence contract—the day the former occupant permanently vacated the premises.
The former occupant’s liability to pay recurrent charges in relation to general services that arise after the former occupant has permanently vacated the residential premises must be met—
in relation to a liability arising during the 42 days immediately after the day the former occupant permanently vacated the premises—by the former occupant; and
in relation to a liability arising after the period mentioned in paragraph (a)—by the former occupant and the operator of the village in the same proportions as the former occupant and the operator would share any capital gain under the village contract.
If the departure fee payable by a resident under the village contract is worked out in relation to the incoming resident’s ingoing contribution, for subsection (3) (b)—
the operator’s share is taken to be the percentage of the capital gain equal to the percentage of the incoming resident’s ingoing contribution in relation to which the departure fee is worked out; and
the former occupant’s share is taken to be the remaining percentage.
Subsection (4) applies despite any provision in the village contract about how the former occupant and the operator of the retirement village are to share in the capital gain.
Example
Lewis has moved from the retirement village operated by Henry into a residential care home. Lewis’s village contract states that he is entitled to 100% of the capital gain. However, under his contract, Lewis is liable to pay a departure fee worked out as 25% of an incoming resident’s ingoing contribution. Therefore, Henry’s share of the capital gain is taken to be 25% and he is liable to pay 25% of the recurrent charges for general services, and Lewis is liable to pay the remaining 75%.
This Act’s bill:Explanatory statementSecond reading speech
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